The development of a new LNG site and floating liquefaction facilities on Vancouver Island, Canada has moved a step closer with two recent planning breakthroughs.

Malahat LNG is proposed to be an LNG facility on the shoreline of Malahat Nation-owned land approximately 8km south of Mill Bay on Vancouver Island.

According to a statement from British Columbia-based Steelhead LNG Corp., the facility is expected to have a capacity of up to six million tonnes per annum (mtpa) and would include floating liquefaction facilities moored to the shoreline, and other land-based infrastructure.

In the first of two recent developments on the project, Steelhead LNG announced in late August that it had successfully completed a Mutual Benefits Agreement (MBA) and Long-Term Lease for Malahat LNG with the Malahat First Nation Government.

Secondly, this week the company announced a pre-construction agreement with pipeline developer Williams to commence with the design and regulatory approvals for the Island Gas Connector Project (Project), a proposed pipeline to transport natural gas to Vancouver Island.

The Project would be an independent pipeline that would transport natural gas 33 miles (52.8 kilometers) from Williams’ Northwest Pipeline’s interconnect with Spectra Energy’s British Columbia Pipeline system at Sumas, Washington to Cherry Point, Washington. From there, it would travel 75km subsea, landing directly at the proposed Malahat LNG project.